Market Brief for Sacha Inchi.

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6. Market and buyer requirements 6.1 Product requirements 6.1.1 Packaging and labelling The unit Cosmetics and Medical Devices, of the European Com- mission / Directorate General Enterprise and Industry, provides information on packaging and labelling, as part of the Cosmetics Directive 76/768/EEC. General labelling requirements stated in this Directive are: � Name and address of the manufacturer � Batch number � Nominal net content � Function of the product � Date of minimum durability � List of ingredients (according to INCI) � Usage precautions Regarding Switzerland, packaging and labelling requirements are part of the Swiss cosmetics law (VKos, see legal requirements). For the cosmetics industry, a standardized quality is important. An example of good packaging is to supply the oil in air-sealed drums (of 5kg or 25kg). 6.1.2 Documentation When approaching a buyer of sacha inchi, it is of utmost importance that the exporter has product documentation. A Technical Data Sheet (TDS) and a Material Safety Data Sheet (MSDS) are required. Based on this product information, an importer should be able to assess the features of the product and to easily compare it with substitutes. It is important to consider the fact that one of the first things an importer will ask for is more detailed product information. It is of crucial importance that the exporter has this kind of information readily available. Besides, an exporter should be able to indicate the quality of its product, the quantity, the price, and the availability. Furthermore, it is important to include test results from a laboratory when available, that indicate the properties of the oil. This would definitely be an advantage for an exporter targeting the cosmetics industry since sacha inchi is a new product in Europe. 12 | Market Brief for Sacha Inchi 6.2 Quality standards and certification schemes 6.2.1 Quality standards When targeting the European market, quality standards are very important. The European customers are looking for reliable suppliers that provide a constant quality at a good price. Next to documented quality standards, the tracking and tracing of the entire production chain is important. Tracing and tracking of ingredients is increasingly required by cosmetics companies and processors in the EU. Suppliers that have a (documented) system of tracing and tracking have a competitive advantage when dealing with Europe- an importers. Note that although most quality standards are not obligated, a company will be disadvantaged when not complying with any internationally recognized standard. ISO 9000 and 14000 Although not an obligatory standard, the ISO 9000 is strongly increasing in importance in Europe. The ISO 9000 standards provide a framework for standardising procedures in an entire organisation, regarding quality, health, safety and environmental issues. The best known environmental system is ISO 14000, within which ISO 14001 is specifically aimed to minimize a company’s impact on the environment. ILO and SA8000 The International Labour Organisation (ILO), installed Conventions and Recommendations so that basic human and labour rights are respected within a company. Issues that are addressed in the Conventions are for example minimum wage, minimum age, and discrimination. The ILO is internationally accepted and provides information and guidance to companies regarding human rights. SA8000 is one of the most well-known voluntary global standards to ensure social accountability. SA8000 includes standards in the form of a Code of Conduct. The codes are based on the ILO Con- ventions and on other human rights Conventions. GMP and GACP The Good Manufacturing Practice (GMP) and Good Agricultural and Collection Practice (GACP) state the minimum quality and hygiene requirements. These standards are binding for UN member states and have to be incorporated in their legislation. Note that Colipa sets the GMP guidelines for cosmetics.
Other initiatives Various initiatives have been taken to come to an international standard of natural and organic standards. The two principal ones are Cosmos standard and NaTrue. Although not of direct rele- vance to producers of ingredients, these certifications will have an influence on the future use of natural ingredients in cosmetics, by improving clarity to consumers and the industry. NaTrue is a relatively new organisation, which is formed by leading natural cosmetics firms in Europe. The organisation aims to estab- lish clear quality standards for natural and organic cosmetic products. More information: � ISO - http://www.iso.org/iso/home.htm � ILO - http://www.ilo.org � SA8000 - http://www.sa8000.org � GMP and GACP: http://www.who.int � NaTrue - http://www.natrue.org � Cosmos - http://www.cosmos-standard.org 6.2.2 Certification schemes Organic The EEA has specific requirements regarding production and labelling with which an organic product of agricultural origin must comply in order to be marketed as organic. These are laid down in the following provisions: � Organic production and labelling of organic products: EC 834/2007 and EC 889/2008. � Imports of organic products from third countries: EC 1235/2008. Although the Swiss industry recognises and accepts EEA standards regarding organic products, optimal marketing in Switzerland might require Biosuisse certification. � Ordinance on organic food products (Switzerland): RS 910.18. � Biosuisse - http://www.bio-suisse.ch Fair Trade Fair Trade standards are set and recognised internationally. The Global Network of Alternative Trade Organization (IFAT) (http://www.wfto.com) is a global network of 154 fair trade organizations in 49 countries around the world. The European Fair Trade 13 | Market Brief for Sacha Inchi Association (EFTA) (http://www.eftafairtrade.org) consists of 11 member organizations in 9 European countries. FLO International (http://www.fairtrade.net) is the leading standard- setting and certification organisation for the Fairtrade label and part of a worldwide network of Fair Trade organizations. Products that carry the Fairtrade label guarantee the consumer that producers have a Fairtrade Minimum Price. Within Europe, FLO is active in Austria, Belgium, Denmark, Esto- nia, Finland, France, Germany, Ireland, Italy, Luxemburg, the Netherlands, Norway, Spain, Sweden, Switzerland and the UK. Depending on your target market, other ethical marks may be as well or better recognised and therefore should be considered, such as: � Fair for Life (IMO) - http://www.fairforlife.net � Ecocert - http://www.ecocert.com Wild collection In case of wild collection, it is important to use sustainable practic- es. A number of certification schemes exist to help ensure sustain- ability. These include the wild collection standards of organic certi- fiers, the principles and criteria of Biotrade, and the FairWild standard. � UNCTAD Biotrade Initiative – http://www.biotrade.org � FairWild - http://www.fairwild.org 6.3 Legislative requirements Legislative requirements are the minimum requirements which must be met by sacha inchi marketed in the EU and EFTA countries. Products which fail to meet these requirements are not al- lowed on the EU and EFTA market. The EFTA States, with the exception of Switzerland, take part in the European Economic Area (EEA). This means that Liechten- stein, Norway and Iceland follow EU food legislation in general. Table 6.1 presents the legislative requirements for the EEA and Switzerland. REACH Contrary to many other ingredients for the cosmetics industry, vegetable oils and fats (including the ‘exotics’) are exempt from
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